Markets
TGT

Apple Watch: Will Availability at Target Stores Boost Sales?

An image of a stock chart
Credit: Shutterstock photo

In an attempt to boost its Watch sales further, Apple Inc.AAPL has collaborated with another third-party retailer, Target Corp. TGT , which will offer the basic versions of the device through its stores (from Oct 25) and online platform (from Oct 18).

Target will offer only about 20 models of the device priced between $349 and $599. That is if you want a higher-end customized watch you will still have to visit an Apple store (the most expensive gold plated version is priced at about $17000).

Previously, Apple had teamed up with key retailers like Best Buy Co., Inc. BBY , Sprint Corporation and T-Mobile as well as a number of other stores and retail chains across the globe.

Collaborations with third-party retailers are expected to give a broader exposure to this Apple product, making it easier for users to get hold of the device from more convenient locations.

Apple which entered the market early this year has already made its mark. Per an IDC report, at the end of the second quarter, Apple had captured about 20% of the wearable market. In fact, the company was only second to established market leader, Fitbit FIT , which had over 24% of the market. Notably, at that time, Apple watches weren't even available on the third-party platforms.

Additionally, the report states that the wearable market expanded 223.2% in the second quarter. Separately, according to a report from CCS Insight, the wearable devices market is estimated to grow about 158% in 2015. These estimates indicate that Apple has a fair chance of grabbing a larger share of this market.

While we believe that smartwatches are not yet as compelling buys as smartphones, even then the wearable market is undoubtedly surging as people have become more tech-savvy. The entry of Apple in the market is also influencing demand to an extent, propelled by its robust ecosystem and a loyal customer base.

The Apple Watch, which comes with a range of interesting features, nicely complements its most important offering iPhone. Perhaps this is what makes the device more attractive to users in contrast to other devices. And this is despite the hefty price difference (the higher-end Fitbit watch comes for only about $250). But as we all know, Apple has a created niche for itself in offering most expensive products, irrespective of the market it enters.

Having collaborations with third-party retailers will allow Apple to reach more customers and that too in diverse regions, especially as this Zacks Rank #3 (Hold) company does not have such an expansive network of stores outside the U.S.

Apple has also released the latest software update for Watch, watchOS 2.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

APPLE INC (AAPL): Free Stock Analysis Report

BEST BUY (BBY): Free Stock Analysis Report

TARGET CORP (TGT): Free Stock Analysis Report

FITBIT INC (FIT): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

TGT AAPL BBY FIT

Other Topics

Stocks

Latest Markets Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More